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Text of Hacienda Administrative Determination No. 25-03: Amendments to Puerto Rico's Retirement Plans Pursuant to the Provisions of SECURE Act 2.0

"[T]he Department has determined that amendments adopted by qualified retirement plan sponsors in Puerto Rico to adopt the provisions of the SECURE Act 2.0, whether optional or mandatory ... will not be considered part of the definition of the term 'Qualification Amendments'. Therefore, if a qualified retirement plan in Puerto Rico is amended to adopt the provisions of the SECURE Act 2.0, the plan does not have to be resubmitted to the Department to request a new Letter of Qualification. Any amendments adopted by qualified retirement plan sponsors under the Code, in parallel with the approval of amendments to adopt the provisions of the SECURE Act 2.0, are outside the scope of this Determination; therefore, they must be analyzed in light of CC PC 16-08 to determine whether they should be submitted to the Department for plan qualification."

Text of Hacienda Internal Revenue Circular Letter No. 25-01: Limits Applicable for the Year 2025 to Puerto Rico Qualified Retirement Plans

"On November 1, 2024, the IRS published the limits under the Federal Code for the taxable year beginning on January 1, 2025.... [The Puerto Rico Department of the Treasury (Hacienda)] issues this Circular Letter with the purpose of establishing the limits applicable to qualified retirement plans under Section 1081.01(a) of the Code for the taxable year 2025."

Text of Hacienda Internal Income Circular Letter No. 21-20: Qualified Plan Distributions in the United States and Puerto Rico

"[T]he Department issues this Circular Letter with the purpose of establishing the procedure to be followed by an individual who is not a resident of Puerto Rico to demonstrate that the distributions of his retirement plan qualified under the Federal Code and whose trust was created in a US state are not subject to tax in Puerto Rico."

Text of Hacienda Internal Revenue Circular Letter No. 23-01: Limits Applicable for the Year 2023 to Qualified Retirement Plans Under the Puerto Rico Internal Revenue Code

"[T]he following limits do not adopt by reference the limits established by the IRS ... and, therefore ... for the taxable year beginning on or after January 1, 2023 will be ... [1] Limit on Cash or Deferred Contributions applicable to participants in a qualified retirement plan ... (Section 1081.01(d)(7)(A)(i) of the Code) -- $15,000. [2] Limit on Additional Contributions applicable to participants in a retirement plan not sponsored by the federal government who have reached age 50 (Section 1081.01(d)(7)(C)(i) of the Code) -- $1,500. [3] Limit on Voluntary Employee After-tax Contributions applicable to participants in qualified retirement plans ... (Section 1081.01(a)(15) of the Code) -- ten percent (10%) of the participant's aggregate compensation for all years of participation in the plan."

Text of Puerto Rico Hacienda Administrative Determination 22-02: Repeal of Administrative Determination 21-01; and Tax Treatment of the New Defined Contribution Plan of the Retirement System of the Government of Puerto Rico

"The Department determines that, for purposes of the provisions of Article 3.8 of Law 106-2017 related to benefits for separation from service, the participant may transfer the balance of his Defined Contribution Account to any other defined contribution plan that is duly qualified under Section 1081.01(a) of the Code. Similarly, a new participant can make a transfer to his Defined Contribution Account from another qualified plan of a previous employer and said transfer will be exempt from taxation under Section 1081.01(b)(3)(D) of the Code. In addition, the trustee will not be required to make the deduction and withholding provided in Section 1081.01(b) of the Code if the distribution qualifies as a transfer contribution under Section 1081.02(d)(4) and the distribution is transferred by the trustee. directly to the trustee of an individual retirement account by instructions of the owner or beneficiary of the same."

Text of Puerto Rico Internal Revenue Circular Letter No. 20-29: Special Distributions from Qualified Retirement Plans and Individual Retirement Accounts Due to a Disaster Declared by the Governor of Puerto Rico

"[T]he Department deems it necessary to extend the Eligible Period established in CC RI 20-09 to grant an additional period of time for individuals to access retirement funds and IRA accounts to the extent that their economic conditions so require.... Therefore, CC RI 20-09 and CC RI 20-23 are amended to establish that the Eligible Period to make Special Disaster Distributions will be in effect until Thursday, December 31, 2020."

Text of Circular Letter No. 20-24: Special Distributions from Qualified Retirement Plans and Individual Retirement Accounts Due to a Disaster Declared by the Governor of Puerto Rico

"[T]he Department issues this Circular Letter with the purpose of amending CC RI 20-09 to eliminate the requirement of signing before a notary public of the request for a Special Disaster Distribution and allow the requests to be processed. electronically without the need for the intervention of a notary public."

Text of Puerto Rico Circular Letter CC RI 20-09: Special Disaster Distributions from Qualified Plans Following Recent Earthquakes

"Puerto Rico is in an emergency situation due to the earthquakes that have occurred since January 6, 2020 and that continue to affect the infrastructure of the southern area of ​​Puerto Rico.... [T]he Department issues this Circular Letter with the objective of establishing: [1] the period of time during which Special Disaster Distributions may be made, both from Retirement Plans and IRA Accounts; and [2] the responsibilities imposed on the fiduciaries, administrators and service providers of the Retirement Plans and IRA Accounts regarding the fulfillment of their responsibilities as a retaining agent in these Special Disaster Distributions."

Text of Puerto Rico Treasury Administrative Determination No. 17-29: Rules Applicable to Distributions by Qualified Retirement Plans and Individual Retirement Accounts Due to Hurricane Maria

"Eligible Individuals may choose to receive Eligible Distributions independently of other forms of payment available under the Retirement Plan or IRA. In addition, such Eligible Individuals who receive an Eligible Distributorship do not have to be subject to a restriction period in the continuation of their contributions to the Retirement Plan or the IRA after the distribution is completed.... [E]ligible expenses are considered all those expenses that an individual will incur to correct losses or damages suffered by Hurricane Maria for Puerto Rico and extraordinary and unforeseen expenses to cover basic needs as a result of the disaster caused by said phenomenon.... [T]he related expenses may have been incurred by the Eligible Individual, his or her spouse, descendants or ascendants.... During the Eligible Period, the approval and disbursement of loans to participants of a Retirement Plan is permissible, even if at the time the loan is completed, said retirement plan does not provide for them, subject to the plan being amended ... to adopt such loans." [Translation provided by Google Translate; official Spanish-language document is available online.]

Text of Circular Letter 2020-23: Special Distributions from Qualified Retirement Plans and Individual Retirement Accounts

"The [Puerto Rico Department of the Treasury] determines that, for the purposes of the Special Disaster Distributions established in CC RI 20-09, any expenses incurred to correct losses or damages suffered and extraordinary and unforeseen expenses to cover basic needs as a consequence of the emergency declared by COVID-19 including the loss of income due to the curfew declared by the Governor, will be considered as Eligible Expenses. Therefore, a distribution that meets the requirements established in CC RI 20-09 and that is used to defray the expenses indicated above related to the Coronavirus emergency, will be considered a Special Disaster Distribution. This determination, like CC RI 20-09, applies to residents of the 78 municipalities of Puerto Rico."